Moscow apartments: on a record wave

Moscow apartment market experienced several records at the end of the second quarter of 2021. For the first time in ages the volume of supply increased on the background of a record demand. All this together continued to push the prices up. As a result, the cost of comfortable class apartments inside MKAD crossed a psychological mark and exceeded 200 thousand rubles per 1 sq. m.

For the first time in the last 10 months due to the starting sales of new projects the apartments offered at the primary market of Moscow increased in comparison with the previous period and by the end of the second quarter of 2021 amounted to 7 836 apartments in 126 projects (+25% to the first quarter of 2021 by the number of apartments). At the same time, compared to the second quarter of 2020, the volume of exposure decreased by 22%.

Buying activity at the Moscow primary apartment market remained at a high level in the second quarter of 2021 against the background of the preferential mortgage lending. A total of 3,362 apartments were sold, which is 4% more than in the first quarter of 2021 and 56% more than in the second quarter of 2020.

At the same time, prices of apartments in the first half of 2021 increased by 17-36% compared to the first half of 2020, depending on the class - up to 508.2 thousand rubles per 1 sq. m. In this case the elite class became the growth leader in January, while in the second quarter it was a "comfort" class (+8% up to 191, 2 thousand rubles per sq. m.). As a result, the price of comfortable class objects within MKAD, which was growing at the same average rate, crossed the psychological mark of 200 thousand rubles per 1 sq. m. (213,4 thousand rubles per sq. m.). At the same time the average price in the Middle Moscow Region and NAO where it was 156, 6 thousand rubles per sq. m. remains at its minimum (+7% up to first quarter of 2021 against the background of new projects).

Following a rush of demand in the first half of 2021, the demand in the third quarter of 2021 is experienced to be negative, but a short-term correction in demand will probably turn to stabilization at the end of the year. There will be inertial growth of prices in some projects. In the second half of 2021 there may be multidirectional dynamics of prices in terms of projects, depending on which projects will be assigned the status of housing.

Daria Kaneva, Deputy Director of the Department of Asset Management and Investments of Becar Asset Management:

"Despite the slowdown in price growth, the second quarter continued to break the price records of the last few years. As a result, compared to the first half of 2020, the price increase was 10-30%, and the most expensive were luxurious apartments.

In the second quarter we saw a slight change in the exposition structure. Business class is still in the first place, and elite apartments are in the second place, but at the same time the share of comfortable class has increased significantly - up to 34% due to the new projects.

Against the background of the launch of subsidized mortgage programs with completely different restrictions, we see that at the beginning of the second half of the year the prices have stabilized, and their rebound is inevitable.